The Following Data Are Taken from the Cash-Basis Accounting Records $\text { Selected Data as of December 31, } 2012$

question 148

Essay

The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31, 2012: $\text { Selected Data as of December 31, } 2012$
$\begin{array}{lr}\text { Customers billed in 2012 for services provided } & \$ 400,000 \\\text { Cash collections in 2012 for accounts billed in 2011 } & 20,000 \\\text { Cash collections in 2012 for accounts billed in 2012 } & 300,000 \\\text { Cash paid for supplies purchased in 2012 } & 12,000 \\\text { Supplies remaining at the end of } 2012 & 2,000 \\\text { Cash paid for salaries in 2012 } & 10,000 \\\text { Cash paid for annual rent on March 1, 2012 } & 18,000\end{array}$ Calculate the amount of revenues and expenses for 2012 under accrual-basis accounting.

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Definitions:

Dominant Firm Model

A market structure where one large firm controls the majority of the market share, influencing prices and output levels while smaller firms act as price takers.

Market Structure

Refers to the organization and characteristics of a market, including the degree of competition, number of firms, and the distribution of market shares.

Large Firm

A business entity characterized by a large scale of operations, potentially including extensive product lines, significant market share, or substantial workforce.

Profit Maximizing Price

The price at which a firm can generate the highest possible profit, determined by the intersection of the firm's supply curve and the market demand curve.